In this week's CSR news, we will talk about pay equity and transparency in companies to play a key role in improving the internal climate.
In addition to these social challenges, the energy transition is experiencing strong growth in terms of jobs, although some sectors are in financial deficit...
Companies like Crédit Mutuel and MAIF are reinventing the distribution of profits by allocating them to ecological and social projects.
In short, find the 10 CSR news for the week of September 23, 2024.
Pay equity benefits the life of the company
The sociologist Elise Penalva-Icher gives an interview to Novethic, in which she looks back on her surveys and research on remuneration. She maintains that “Pay differentials symbolically place managers out of their company”.
Salary frustrations are primarily due to the great complexity of the remuneration system: schedules, bonuses, profit-sharing, participation... so many devices that are often misunderstood by employees.
It also recalls the weight of salary collection on the feeling of fairness among employees. Wage differentials are not unacceptable, but should be “justified by understandable principles” to be accepted.
Finally, it notes a growing demand for transparency and equity in remuneration policies, which are beneficial to a climate of good understanding at all levels in the company.
421,000 sustainable jobs identified in France!
In its annual study on the markets and jobs associated with the energy transition, Ademe works on the weight of sectors such as:
- Sober and low-emission transport
- The buildings
- Renewable energies
Their latest study (period 2020 to 2022) reveals that these three sectors accumulate a turnover of 113 billion euros in 2022. This is 3.6 times more than in 2006.
In addition, and calculated in full-time equivalent, they include 421,300 “associated direct jobs” in 2022, 24% more than in 2020.
However, although their turnover is increasing sharply, the deficit is widening in these sectors and represents a sum of 18 billion euros, two-thirds of which is attributable to the import of electric vehicles.
What are “ecological and societal” dividends?
In 2023, the Crédit Mutuel Alliance Fédérale bank and the insurer MAIF decided to allocate a significant portion of their profits each year to initiatives and projects with a positive impact in terms of the environment or social utility. A way of considering “the planet as a shareholder” of the company.
For example, at MAIF this represented 10% of its net income, or 8.2 million euros. In particular, this amount was invested in projects to protect biodiversity.
In a context of increasing corporate responsibility in terms of social and environmental impact, this responsible dividend system is a concrete and directly effective way for them to commit themselves in this direction. Finally, it is a response to debates on the sharing of value, offering the opportunity for a better distribution of dividends between shareholders and projects of general interest.
Companies are very late in calculating scope 3 emissions
A Censuswide study for Sweep and Capgemini looked at how businesses relate to the need to sustainably transform their business models. The result is an astonishing gap between a very strong awareness, and decision-making that is sometimes too timid in terms of sustainability.
The study interviews French, American, German and British companies. It shows that 81% of respondents admit that their viability is directly linked to their ability to adapt to a new economic reality.
However, 47% of them claim to be “frustrated” by the complexity of the indicators and reporting requirements. Finally, the mapping of scope 3 emissions, which represent on average 70% of the impact of businesses, is not carried out by 72% of respondents. A situation that prevents them from thinking about their impact from a global perspective.
Increase in the number of industrial accidents with environmental impact
France Nature Environment, federation French Of associations of protection of nature and the environment, alerting this year to the increase in the number of industrial accidents and incidents. In 2023, it lists 404 accidents and 840 incidents, figures that are up compared to 2022, which the NGO explains by a ” lack of controls” installations.
To date, 500,000 industrial or agricultural installations are “classified”, i.e. identified as sites at risk for the environment, health or safety.
“In 2023, 73% of accidents in fact resulted in the release of hazardous materials and 68% had environmental consequences.”
4 CSR solutions to implement in the company
CSR is reaching a certain point of maturity in French companies, and innovative solutions to make it concrete are also:
- Skill sponsorship: Consists in making an employee available for a project of general interest during their working time.
- Responsible mobility leave: Give additional half-days of leave to employees who travel with responsible mobility, thus avoiding flying.
- Ecological and social dividend: Consists in giving up part of one's profits to finance sustainable projects.
- Better pay transparency: Before hiring and within the company, a right to wage transparency will soon be a binding European directive.
Slowdown in responsible investment by French people
The annual survey by Ifop and the FIR (Forum for Responsible Investment) reveals a downward trend for sustainable products among French investors and savers. More specifically, sustainability issues tend to take the back seat of investment priorities.
Responsible investment has lost its place on the podium of priority issues. Climate change is only fourth, behind workplace well-being and human rights.
However, the majority of savers surveyed (51% of them) say they are concerned about the environmental impacts of their investments. They were 59% last year, and even more before 2023.
This trend is explained by the political and economic uncertainties and instabilities that France has been going through in recent months.
Tense tug of war between GAFAM and the EU
Meta, the parent company of Facebook and Instagram, has led a protest movement led by tech companies that accuse Europe of hampering private innovation and competitiveness. At issue, the European standards linked to the DMA (Digital Market Acts) regulation, which are accused of being at the origin of it.
This lobbying has resulted in the suspension of their artificial intelligence assistants in Europe by Meta and Apple until further notice. Meta even goes so far as to say that Brussels “rejects progress.”
The EU replies that in reality, its approach is that of unifying national standards into a single regulatory package that benefits the cooperation and innovation of European tech companies. Moreover, that these digital giants will never give up on a market of “450 million fairly rich inhabitants”.
MSCI does not resist European regulations
The major American financial services provider MSCI is going to remove the terms “ESG”, “impact” or even “sustainability” from the names of its indices. Anticipating a tightening of European and British regulations in this area, the largest provider of indices in Europe for ETFs (investment funds) is bowing to them.
These are the new ESMA guidelines (European Securities and Markets Authority) which require compliance with specific criteria in order to make an investment fund “sustainable”.
A victory for the European regulator, which forces sustainable investment approaches to compliance with elementary standards: the exclusion of oil stocks and a proportion of at least 80% of responsible investments in funds that present themselves as “green”.
European law against deforestation under pressure
The European law against imported deforestation is due to come into force on December 31. Very restrictive for some companies, it is under strong pressure to postpone the date of its implementation.
This standard aims to put an end to the import into the EU of products derived from deforestation: “cocoa, coffee, soy, palm oil, palm oil, wood, beef but also rubber”. Products that are sometimes essential to the business models of certain European giants.
In particular, Germany has joined the movement of international protests, arguing that the survival of certain companies whose supply chains would be seriously threatened by this law was at stake. On the other hand, and while the President of the Commission is about to back down, green MEPs warn of the “ecocidal” potential of such a setback.
The sources
Carenews “Ademe lists 421,000 jobs linked to the energy transition in France”
Sustainable news “Ecological and societal dividends: Earth as a shareholder”
RSE Magazine “In France, 1 company out of 6 still does not map its emissions”
Youmatter “404 industrial accidents in installations classified in 2023”
Carenews “Inclusion, social, ecology... Six CSR innovations for your business”
Le Monde “AI: Meta and Apple put pressure on the European Union, accused of “rejecting progress””
L'Agefi “MSCI removes the term ESG from the name of its indices”
Novethic “The European law against imported deforestation could well end up in the bush”
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